EarthLink to Buy OmniSky Assets
EarthLink Inc. said it has agreed to pay $5 million for the assets of OmniSky Corp. that includes including 32,000 subscriber accounts.
San Francisco-based OmniSky is the latest wireless services provider to fold under the pressure of heavy debt and a scant customer base.
The purchase is subject to approval by the U.S. Bankruptcy Court in San Francisco, where OmniSky plans to file for Chapter 11 protection next week.
The company still could be sold to a higher bidder.
Atlanta-based EarthLink, an Internet service provider with about 4.8 million subscribers, said the deal would help expand its offerings for non-PC Internet customers.
Shares of EarthLink fell 85 cents to close at $13.80 on Nasdaq.
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